How to increase the share capital of the company after its purchase?

One of the options to quickly start Your business activities in Ukraine - is to buy a ready-made firm with the license you need. If your business does not require a license - it can be just a suitable firm with a clean history.

We carry out support of transactions for the purchase and sale of ready-made firms and even have several ready-made firms, which we have registered by ourselves. One of the questions that we receive from our Clients in the process of re-registering the firm to a new owner is whether it is possible to increase the share capital of the company at the same time as buying it?

That is why we decided to write a material in which we will answer such questions related to the purchase of a ready-made company and increase of its share capital:

• Is it possible to increase the amount of the share capital at the same time as the number of participants changes?
• in what terms should the contribution be made?
• how quickly will information about the new capital appear in the Unified State Register?

Nuances of share capital increase in the acquired company 

Firstly, it will not be possible to change the composition of participants and increase the share capital at the same time.

This is due to the fact that the purchase and sale of shares is formalized by the relevant contract, after which an act of acceptance and transfer of the share is made.

According to the current legislation, the act is submitted to the state registrar. It is possible even without the contract itself. The authorized capital is increased by the decision of the general meeting of participants.

As for the timing of share capital contributions and how soon the new share capital will be listed in the State Register, the description of the share capital increase process will help to understand.

Algorithm of increase in the share capital of the Ukrainian company:

• at the boarding meeting the decision on the intention to increase the authorized capital, the amount of the increase, which of the participants should contribute and the period of contribution is made. This period should not exceed one year from the date of the decision. At the same time, the law does not establish a term less than which participants may not be given to make contributions. Therefore, nothing prevents participants from making a decision that additional contributions should be made no later than three days after the decision is made;
• the actual provision of additional contributions;
• no later than one month after the end of the allotted period for making additional contributions, the general meeting must meet again to approve the results of the contributions and the new shares of the participants. This means that the general meeting may meet the day after the above deadline. 

In this way, the new participants set their own time frame to which to contribute. And if you want to increase the capital when buying a new company, it will take from a few days - up to a week, after all the changes associated with the registration of the company to the new owners.

Important! The last protocol (or the decision of the sole participant) is submitted to the registrar for registration of the share capital increase, for this purpose it must be stated on the notarial form, and the signatures on it - certified by a notary.

If you are looking for the firm in Ukraine and want to be sure of the safety of the transaction - contact us. We can help as at a stage of selection and check of firm, and in the course of its reissuing, taking into account all your wishes.